GCC Corrugated Box Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3.76 Billion |
| Market Size (2029) | USD 4.64 Billion |
| CAGR (2024 - 2029) | 4.34 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
GCC Corrugated Box Packaging Market Analysis
The GCC Corrugated Box Packaging Market size is estimated at USD 3.76 billion in 2024, and is expected to reach USD 4.64 billion by 2029, growing at a CAGR of 4.34% during the forecast period (2024-2029).
- The escalating demand for convenience foods, driven by increasingly hectic lifestyles, has increased the reliance on corrugated box packaging. Its exceptional ability to safeguard products from moisture and endure extended shipping periods makes it an ideal choice for companies seeking to enhance customer satisfaction. As a result, corrugated boxes are being widely adopted as a preferred option for secondary and tertiary packaging across various industries.
- A corrugated box is a suitable secondary or tertiary packaging solution for various end-user industries, including electrical goods, food, personal care, cosmetics, etc. Corrugated boxes are commonly used to ship vegetables or other foodstuffs to retailers. This is a new opportunity for corrugated board suppliers with delivery-friendly formats containing goods within a die-cut interior. It helps reduce the overall weight of the final product compared to glass or metal.
- The widespread adoption of e-commerce has changed the retail market. This megatrend, which has changed the dynamics of consumer behavior and retail business models, is witnessing growth in the GCC and offers significant potential for industry players. The GCC's main drivers of e-commerce growth are high per capita income spending potential, well-developed transportation and logistics networks, increased internet penetration, and technology. The corrugated packaging industry's primary product trends and innovations are lightweight containerboards with less essential weight, which have significantly reduced freight costs. Innovative designs, which provide superior printing and cost savings through effective volume utilization, have also been driving the growth of the market studied.
- The Red Sea crisis downsized the containerboard shipments and impacted the availability and cost of local road transport and the usage of the Saudi Arabian port in Jeddah on the Red Sea coast. This has increased the raw material cost of corrugated box packaging in the GCC region, which may impact the market's growth during the forecast period by challenging the material availability.
- Amidst the COVID-19 pandemic, online orders saw a significant surge in the GCC region, catering to a wide array of end-user verticals. Notably, corrugated packaging emerged as a pivotal player in the food packaging sector, bolstering the market’s growth in the post-pandemic period.
GCC Corrugated Box Packaging Market Trends
Processed Food Segment to Significantly Support Growth
- Corrugated boxes can be designed to minimize space in packaging, reducing the risk of product movement and damage during transit. This extends shelf life and plays a pivotal role in curbing food waste. Additionally, when the corrugated board is food-safe for direct contact, it diminishes the necessity for additional inner packaging, supporting the market’s growth.
- The corrugated box packaging market in GCC is characterized by strong applications in the food industry. Consumers tend to look for cost-effective, sustainable, lightweight, reusable, recyclable, and convenient products, driving the demand for corrugated packaging in food products. The rising demand for packaging foods in portable and convenient formats has helped drive the use of packaging products across various industries. Recyclability and decomposability make corrugated packaging more sustainable than other materials, which is expected to support its adoption in the future.
- Furthermore, the food industry in the United Arab Emirates has experienced a significant upswing, primarily propelled by a rising appetite for retail and processed foods in key urban centers such as Dubai, Abu Dhabi, and Sharjah. This demand surge is due to lifestyle changes and a growing emphasis on health. Given its constrained agricultural production, the United Arab Emirates leans heavily on imports, sourcing over 80% of its food requirements internationally.
- However, in January 2024, prices for locally produced container boards rose in the GCC countries. The Middle East Paper Company (MEPCO) announced a price hike of USD 70 per ton in January 2024, which is expected to impact the growth of corrugated packaging in the processed food segments in the region.
- The retail sales of food items have been increasing significantly in the GCC region, which is expected to support the growth of the market by creating a demand for corrugated boxes used for the packaging of processed foods in the coming years. It further enhances waste reduction efforts and supports the market’s growth in food packaging.
Saudi Arabia to Occupy Significant Market Share
- Saudi Arabia is one of the GCC region's leading markets in the packaging industry. The country has a notable consumer base and a wide range of industrial activities (apart from the oil and gas sector) that are in line with the country's Vision 2030 objective, adding to the rapid demand for paper and paperboard packaging. The growing demand for customer-friendly packages and heightened product protection is expected to boost corrugated packaging as a viable and cost-effective solution in Saudi Arabia.
- The country has been supporting the manufacturing of corrugated packaging solutions, which indicates the demand for them in the future. For instance, in March 2024, the construction of Saudi Arabia's mega factory to produce corrugated pallets entered its final stages. The factory is expected to increase the country’s capacity to produce up to 10 million pallets annually.
- The mega factory aims to meet the high demand for innovative and sustainable pallet solutions in the GCC region. Spanning 86,000 square meters, this facility would transform the pallet industry with advanced technology and significantly reduce global logistics costs and carbon emissions, which shows the advantage of corrugated packaging solutions in environmental sustainability.
- Furthermore, in January 2024, the Public Investment Fund (PIF), Saudi Arabia's sovereign wealth fund, announced its investment in the Middle East Paper Company (MEPCO). MEPCO is a Middle Eastern manufacturer that focuses on paper-based products and recycling. PIF's backing would fuel MEPCO's production expansion, enhance operational efficiency, and bolster its commitment to environmental sustainability. This would align with the sustainability objectives of both Saudi Arabia and PIF, which is expected to support the growth of the market studied in the future.
- The youth unemployment rate in the country has been decreasing in line with non-oil-based economic development in Saudi Arabia, which is anticipated to fuel the demand for packaged goods in the country and create growth opportunities for corrugated box packaging solutions during the forecast period.
GCC Corrugated Box Packaging Industry Overview
The market is fragmented with various domestic companies, such as Arabian Packaging LLC, Queenex Corrugated Carton Factory, Universal Carton Industries Group, Napco National, Falcon Pack, etc. Players in the market are adopting strategies such as partnerships, mergers, innovations, investments, company expansion, and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- December 2023: Universal Carton Industries Group, one of the leading corrugated cardboard box manufacturing companies located in Ras Al Khaimah Economic Zone (RAKEZ), invested approximately USD 14.97 million to expand its production volume to meet the growing demand for sustainable packaging solutions in the United Arab Emirates and overseas. This expansion will increase Universal Carton Industries Group’s production capacity by threefold to 100,000 tons annually, which shows the future market growth potential of corrugated box packaging in the GCC region.
- August 2023: EPG (Ehrhardt Partner Group), a supply chain software provider, partnered with Falcon Pack, a market vendor based in Dubai, to integrate EPG's Transportation Management System (TMS) in Falcon Pack's industrial set-up. This aims to enhance the speed, accuracy, and overall efficiency of Falcon Pack's rapidly expanding packaging activities in Dubai, supporting the Flacon Pack's presence in the market studied.
GCC Corrugated Box Packaging Market Leaders
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Arabian Packaging Co. LLC
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Queenex Corrugated Carton Factory
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Napco National
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Falcon Pack
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Universal Carton Industries Group
*Disclaimer: Major Players sorted in no particular order
GCC Corrugated Box Packaging Market News
- July 2024: EMX, a logistics provider under 7X, announced the launch of “EMX International,” its new international solution for e-commerce parcel delivery in the Gulf Cooperation Council (GCC) region. By partnering with a network of courier service providers across the GCC, EMX International would support the e-commerce business growth in the area and can fuel the demand for corrugated boxes for e-commerce packaging in the GCC during the forecast period.
- August 2023: Al Watania for Industries received a visit from the Head of the Purchasing Department at Arab Food Production Company, which established collaborations to enhance partnerships in various sectors, including the cardboard products sector, egg trays, and plastic and agricultural packaging products.
GCC Corrugated Box Packaging Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of New Entrants
4.3.5 Threat of Substitutes
4.3.6 Intensity of Competitive Rivalry
4.4 Assessment of COVID-19 Impact on the Industry
4.5 Import and Export Analysis
5. MARKET DYANMICS
5.1 Market Drivers
5.1.1 Increased Demand from the E-commerce Sector
5.1.2 Growing Demand for Lightweight Materials and Scope for Growth in End-user Sectors
5.2 Market Restraints
5.2.1 Concerns About Material Availability and Durability of Corrugated-based Products
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Plain
6.1.2 Printed
6.2 By Printed
6.2.1 Litho-Laminate
6.2.2 Others
6.3 By End User
6.3.1 Processed Food
6.3.2 Fresh Food
6.3.3 Beverages
6.3.4 Personal Care
6.3.5 Other End Users
6.4 By Country
6.4.1 Saudi Arabia
6.4.2 United Arab Emirates
6.4.3 Qatar
6.4.4 Rest of GCC
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Arabian Packaging Co. LLC
7.1.2 Queenex Corrugated Carton Factory
7.1.3 United Carton Industries Company (UCIC)
7.1.4 Napco National
7.1.5 Cepack Group
7.1.6 Falcon Pack
7.1.7 World Pack Industries LLC
7.1.8 Universal Carton Industries Group
7.1.9 Stora Enso Oyj
7.1.10 Express Pack Print
7.1.11 Green Packaging Boxes Ind LLC
7.1.12 Tarboosh Packaging Co. LLC
7.1.13 Unipack Containers & Carton Products LLC
7.1.14 Al Rumanah Packaging
7.1.15 NBM Pack
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
GCC Corrugated Box Packaging Industry Segmentation
Corrugated box packaging is a popular material used for shipping, storing, and displaying products. Made from corrugated fiberboard, it consists of a fluted corrugated sheet and one or two flat linerboards. The fluted sheet provides strength and cushioning, making the boxes durable and able to withstand handling and transport.
The GCC corrugated box packaging market is segmented by type (plain and printed), printed (litho-laminate and others), end-user (processed food, fresh food, beverage, personal care, electric goods, and industrial), and country (Saudi Arabia, United Arab Emirates, Qatar, and Rest of GCC). The market sizes and values are provided in terms of value (USD ) for all the segments. The study tracks the consumption and sales of different corrugated box products offered by various vendors operating in the market. The consumption value (USD) of corrugated boxes is considered for the market size and forecasts. The study also analyses the impact of COVID-19 on the market based on the prevalent base scenarios, key themes, and end-user vertical-related demand cycles.
| By Type | |
| Plain | |
| Printed |
| By Printed | |
| Litho-Laminate | |
| Others |
| By End User | |
| Processed Food | |
| Fresh Food | |
| Beverages | |
| Personal Care | |
| Other End Users |
| By Country | |
| Saudi Arabia | |
| United Arab Emirates | |
| Qatar | |
| Rest of GCC |
GCC Corrugated Box Packaging Market Research FAQs
How big is the GCC Corrugated Box Packaging Market?
The GCC Corrugated Box Packaging Market size is expected to reach USD 3.76 billion in 2024 and grow at a CAGR of 4.34% to reach USD 4.64 billion by 2029.
What is the current GCC Corrugated Box Packaging Market size?
In 2024, the GCC Corrugated Box Packaging Market size is expected to reach USD 3.76 billion.
Who are the key players in GCC Corrugated Box Packaging Market?
Arabian Packaging Co. LLC, Queenex Corrugated Carton Factory, Napco National, Falcon Pack and Universal Carton Industries Group are the major companies operating in the GCC Corrugated Box Packaging Market.
What years does this GCC Corrugated Box Packaging Market cover, and what was the market size in 2023?
In 2023, the GCC Corrugated Box Packaging Market size was estimated at USD 3.60 billion. The report covers the GCC Corrugated Box Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the GCC Corrugated Box Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
GCC Corrugated Box Packaging Industry Report
Statistics for the 2024 GCC Corrugated Box Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. GCC Corrugated Box Packaging analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
GCC Corrugated Box Packaging Market Report Snapshots
